Oando, SEC Face-off Drags Stock Market’s Indices By 2.05%
The nation’s equity market closed trading on a volatile note last week, consolidating three consecutive sessions of losses after the two-day public holiday for Eid Mubarak.
The consistent downturn during the sessions, which pulled the All-Share Index (ASI) by 2.05 per cent followed the dwindling investor confidence due to the face-off between the Securities Exchange Commission (SEC) and Oando Plc.
Specifically, the index and market capitalisation depreciated by 2.05 per cent and 2.06 per cent to close the week at 30,432.13 points and N13.402 trillion respectively.
Similarly, all other indices depreciated with the exception of the NSE Premium Index, NSE-AFR Bank Value Index and NSE MERI Growth Index which appreciated by 1.07 per cent, 0.02 per cent and 0.05 per cent respectively.
However, analysts believed that the continued decline of market indices has created “buy” opportunities, rather than selling.
Precisely, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion, stressed the need for government to do the needful by urgently appointing economic managers to kick start disbursement of funds now that the 2019 budget has been passed into law.
“We note that early implementation of the budget will trigger economic activity which would ultimately boost the stock market as well as ensure that the country do not slip into another recession,” he said.
Further analysis of last week’s transactions showed that a total turnover of 768.983 million shares worth N12.546 billion was recorded in 11,291 deals by investors on the floor of the exchange lower than a total of 1.082 billion units valued at N18.111 billion that changed hands in 16,400 deals.
The financial services industry (measured by volume) led the activity chart with 578.032 million shares valued at N7.384 billion traded in 5,934 deals; thus contributing 75.17 per cent to the total equity turnover volume and value respectively.
The oil and gas industry followed with 55.229 million shares worth N1.486 billion in 1,111 deals.
The third place was conglomerates industry with a turnover of 48.332 million shares worth N227.418 million in 470 deals.
Trading in the top three equities, namely, Guaranty Trust Bank, United Bank for Africa Plc, and First City Monument Bank (measured by volume) accounted for 329.929 million shares, worth N5.341 billion in 1,427 deals, contributing 42.90 per cent to the total equity turnover volume.
There was no Exchange Traded Product traded during the week, however, a total of 290,130 units, valued at N3.935 million, was executed in 16 deals last week.
A total of 23,941 units of Federal Government bonds valued at N24.584 million were traded this week in 26 deals compared with a total of 1,057 units valued at N1.060 million transacted last week in seven deals.
Also, 15 equities appreciated in price during the week, lower than 35 in the previous week. 44 equities depreciated in price, higher than 24 equities of the previous week, while 109 equities remained unchanged, the same as 109 equities recorded in the preceding week.